Get Out of Debt Guy - Steve Rhode

Mass Joinder Stein Fights Back and Sues California in Florida


For those unfamiliar with the mass joinder, tort litigation racket marketers have been engaged in, here are the basics. Some law firms have filed suit against lenders for the mortgage mess. And that’s fine. But marketers have been paid to sell consumers into these cases and those marketers have made all sorts of objectionable claims to consumers.

I’ve published a number of the deceptive mailers that consumers have received, marketing compensation documents, and even secret shopper calls. Just follow the link to mass joinder and you will see a plethora of article on the subject.

A couple weeks ago the State of California took action against a couple of the earlier firms that were involved in the promotion of the mass joinder selling. The office of two law firms were raided and the records were seized. Phillip Kramer, Esq. and Mitchell Stein, Esq. and their respective individual firms were taken over by the State of California.

Yesterday Stein fought back by filing a suit against the State of California, in California and Florida.

The nearly identical suits allege that the action by the State of California to protect its citizens was a violation of the civil rights of the plaintiffs of the consumers involved in Steins litigation.

Let’s see if I can summarize the suit for you with quotes from the actual complaint:

The complaint by Stein against the government comes off, in my opinion, as a rant and missive against government without really addressing many of the issues surrounding Stein’s alleged involvement with Kramer and marketers that created this mass joinder deceptive marketing mess and illegal fee splitting.

Stein may proclaim to be totally removed from the actions of Kramer, but the statements of his former client, Brookstone Law and Vito Torchia, say otherwise.

On November 23, 2010, during a phone conversation with Brookstone, Stein stated that he was done working exclusively with Kramer, but that he would continue on a non-exclusive basis. Stein told Brookstone that he wanted to position Brookstone to be the leader and authority on the banking/mortgage/foreclosure crisis. Stein told us that he wanted to work with Brookstone to file mass joinders in various states.He explained that he “understood” what Brookstone could do and wanted to “expand into two platforms.” He promised that he would bring in substantial money by the end of 2011. Stein said that he had “a field of vision” and that it was time to hire additional lawyers for me to manage. He also said that Stein and Brookstone would jointly file a class action Stein was in the middle of drafting.

Both Kramer and Stein said that I did not understand the law. Kramer said that Kramer only pays “marketing fees.” Stein said that there will never be a problem. Stein asserted that attorney-client privilege would prevent discovery of any problems and that I should just get on board and “everything will be fine.”

On or around January 12, 2011, I forwarded a copy of a FORM 1012-R to Stein, as Brookstone’s counsel and partner in mass joinders to obtain Stein approval of the mailer for use by Brookstone. [This mailer makes the same statements that Stein says the state approved. It appears he allegedly approved them as well.] I specifically asked that he respond if any changes were needed before Brookstone could use the mailer. I asked Stein to reply back to me as soon as possible. Stein never responded, leading me to believe he had no objections. – Source

While Stein skewers Brookstone Law in his lawsuit, you can see emails filed by Brookstone as part of Torchia’s previous filing against Stein. Click here. Clearly they worked together and cooperated closely and so the misdirection about Brookstone makes no logical sense.

What a mess.

You can read the two complaints Stein had filed, here and here.

Stein Recom / Signalife / Heart Tronics

As an aside, Stein himself does not come without baggage. As you can see in this June, 2011 lawsuit against Mitchell J. Stein, it is alleged he was integral in operating a stock manipulation scheme which defrauded investors in Recom / Signalife / Heart Tronics.

From that suit:

The July 2008 investigation revealed that Recom / Signalife has a corporate history populated by individuals tied to numerous fraudulent activities. Previously Stein controlled a limited liability company that was the largest shareholder of eMedsoft, Inc., a publicly traded company that later changed its name to Med Diversified, Inc. (“eMedsoft/Med Diversified”) and also served as a director of eMedsoft/Med Diversified. eMedsoft/Med Diversified declared bankruptcy when its largest lender, National Century Financial Industries, Inc. was revealed to be a fraud. As part of the fiasco, the CEO of eMedsoft/Med Diversified pleaded guilty to criminal activities. According to Sparks, Stein sold millions of shared of eMedsoft/Med Diversified stock based on non-public information while actively recruiting new investors in the Company. Sparks also related his experience with Stein with regard to a technology called “Pixbox” that was substantially similar to the truth about Recom/Signalife – Stein touted a revolutionary new technology to Sparks and asked Sparks to recruit investors, but the product never actually existed and was unsalable. – Source

Stein filed a rival rights case against the unknown Postal Inspector and unknown FBI Agent, along with Charles Cain, Rachel Nonaka, Adam Eisner, Lee Ehrlichman, and John Woodbury.

In that case he mentions Recom but fails to mention his association with that company in his filing as the attorney representing some nonprofit groups. You can see the complaint filed on August 15, 2011, here.